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AT&T sheds paging unit
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June 29, 1998: 8:39 a.m. ET
Metrocall buys pager business for $205M; AT&T to focus on cellular
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NEW YORK (CNNfn) - AT&T Corp. said Monday it is selling its electronic paging business to Metrocall Inc. for $205 million in stock and cash.
Metrocall (MCLL) will pay AT&T (T) $110 million cash and $95 million in stock in exchange for the Advanced Messaging Division of AT&T Wireless Services.
Alexandria, Va.-based Metrocall will obtain a five-year national distribution agreement with AT&T, by which AT&T Wireless Services' retail stores will exclusively sell Metrocall paging products.
Metrocall also will acquire an AT&T PCS (personal communications service) license.
The companies expect the transaction to be completed in the fall.
AT&T said last November that it intended to sell the paging unit. The deal allows AT&T to focus its wireless activities on the cellular phone business.
Last week, AT&T said it is acquiring cable-TV giant Tele-Communications Inc. (TCMOA) (TCMOB) for $48 billion.
Shares of AT&T (T) closed at 56-3/4, down 1-1/4 in Friday trading. Metrocall (MCLL) finished up 1/16 at 5-7/8. 
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